Lack of land for luxury dev’t hounds property market

A DEARTH of land has plagued luxury residential properties as location and project density are crucial factors in such developments, a property analyst said.

It is hard to find land for luxury projects, Kash Salvador, associate director for investment and capital markets at Santos-Knight Frank, told reporters in a recent interview.

“Actually, land is very scarce for luxury,” Salvador said. “Land is very scarce that’s why, historically, there have just been a few projects that went online in terms of luxury.”

Buyers pay more attention to factors such as location, over the price point of the project, Salvador noted. “Of course you have to look at the location, density, quality of development and the track record of the developer.”
Luxury condominiums will most likely be located in the Metro Manila business districts, he said.

“Business districts will still be priority because proximity towards work and all the commercial areas is very important,” the property analyst said.

“The units—in terms of the luxury—you’re looking at around 150 square meters or even more. A luxury development is actually a three to four bedroom-type development,” Salvador said.

Santos-Knight Frank earlier said a strong demand for luxury residential condos was evident last year from foreign buyers.

“There are a limited number of people, for example here in the Philippines, who can buy such type of development. That’s why we’re also focused on foreign ownership for that development,” Salvador said.

Foreigners opt for luxury condominiums since they cannot do house-and-lot deals due to the foreign ownership restrictions.

“Because you can’t own house and lots for foreigners, the next best option would be luxury condominiums,” Salvador said.

“In the residential sector we are extremely bullish about the high-end side, especially as we see more Asean and mainland Chinese investors coming,” Santos said.

Santos said the diplomatic ties the Philippines is pursuing with other nations present more investment opportunities. “As the Philippines forges new international alliances [it]attracts a wide net of investors.”